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Both firms are 10096 equity-financed. Firm A can acquire firm B for $82,500 in the form of either cash or stock. The synergy value of

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Both firms are 10096 equity-financed. Firm A can acquire firm B for $82,500 in the form of either cash or stock. The synergy value of the deal is $12,500. Firm A Firm B Number of Shares 10,000 7,500 Price per Share $25.00 $10.00 What will the price per share be of the post-merger firm if payment is made in stock? Select one: a. $25.00 b. $25.76 O c. $25.38 d. $27.30 e. $25.50

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